After rising nearly 5%, oil futures turned and ended the day on a low, feeling the impact of news that the Ômicron variant of the coronavirus was identified in the US, fueling doubts about future demand. During the session, the market also followed the meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+).
WTI crude for January closed down 0.92% ($6.61), at $65.57 a barrel on the New York Mercantile Exchange (Nymex), and Brent crude for February was down 0.52% ( US$0.36), at US$68.87 a barrel, on the Intercontinental Exchange (ICE).
Assessments of the impact of the Ômicron variant on global oil demand dominated the market’s attention. The president of the OPEC+ Conference, Diamantino Azevedo, highlighted that the transmissibility and severity of the strain are not yet clear to health authorities. And, in view of this scenario, it is necessary “to remain united and focused on any change in market dynamics”.
In addition to the new variant, the discussion for a response to the release of oil stocks by countries that are major consumers was on the radar. With 850,000 barrels a day (bpd) in January across the US, OPEC+ will have no option but to delay its planned increase in production by two months, says Commerzbank. On Thursday 2, the group meets again.
On Wednesday, the US Department of Energy (DoE) said oil inventories in the country dropped 909,000 barrels, to 433.111 million barrels, in the week ended 26 November. Analysts heard by The Wall Street Journal predicted a drop of 800 thousand.
Reference: CNN Brasil
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